Product Overview

💰 Invest and Earn Interest in Pencil Finance

With Pencil Finance, individual and institutional investors can:

• Browse curated loan bundles created by verified lending partners from around the world.

• Choose from two types of tokens:

  • Senior Tranche (Grow Token) – Lower risk, fixed return, paid at the end of the staking period.

  • Junior Tranche (NFT) – Higher risk, higher yield, with monthly or quarterly interest payouts.

• Track their portfolio via a personalized dashboard showing returns, bundle status, token value, and transaction history.

• Withdraw interest or redeem tokens based on bundle structure and maturity terms.

By participating, investors earn competitive yield while helping students access affordable education.

🏫 Lend and Raise Funds in Pencil Finance

Verified student loan companies (lending partners) can:

• Tokenize their student loan portfolios into investable bundles using a transparent, structured process.

• Create bundles with customizable parameters (total amount, tranche ratio, interest rates, maturity period).

• List bundles on the Pencil Finance platform to raise funds from a global pool of DeFi investors.

• Manage bundles through a dedicated dashboard:

  • Withdraw loan capital as needed

  • Deposit repayments and interest

  • Post updates and financial reports

Lending companies gain access to non-dilutive, flexible capital, reduce dependence on traditional financial intermediaries, and improve trust through transparent repayment tracking on-chain.